Skip to main content
About HEC About HEC Faculty & Research Faculty & Research Master’s programs Master’s programs MBA Programs MBA Programs PhD Program PhD Program Executive Education Executive Education Summer School Summer School HEC Online HEC Online About HEC Overview Overview Who We Are Who We Are Egalité des chances Egalité des chances Career Center Career Center International International Campus Life Campus Life Sustainability Sustainability Diversity & Inclusion Diversity & Inclusion Stories Stories The HEC Foundation The HEC Foundation Faculty & Research Overview Overview Faculty Directory Faculty Directory Departments Departments Centers Centers Chairs Chairs Knowledge Knowledge Master’s programs Master in
Management Master in
Management
MSc International
Finance MSc International
Finance
Specialized
Masters Specialized
Masters
X-HEC
programs X-HEC
programs
Dual-Degree
programs Dual-Degree
programs
Visiting
students Visiting
students
Certificates Certificates Student
Life Student
Life
Student
Stories Student
Stories
MBA Programs MBA MBA Executive MBA Executive MBA TRIUM EMBA TRIUM EMBA PhD Program Overview Overview HEC Difference HEC Difference Program details Program details Research areas Research areas HEC Community HEC Community Placement Placement Job Market Job Market Admissions Admissions Financing Financing Executive Education Executive Masters Executive Masters Executive Certificates Executive Certificates Executive short programs Executive short programs Online Online Train your teams Train your teams Executive MBA Executive MBA Summer School Youth Programs Youth Programs Summer programs Summer programs HEC Online Overview Overview Degree Program Degree Program Executive certificates Executive certificates MOOCs MOOCs
Faculty & Research

The Corporate Supply of (Quasi) Safe Assets - Lira Mota

08 Apr
2021
3:00 pm
Jouy-en-Josas
English

Participate

Add to Calendar
2021-04-08T15:00:00 2021-04-08T16:00:00 The Corporate Supply of (Quasi) Safe Assets - Lira Mota Finance Speaker : Lira Mota (Columbia)  Videoconference Jouy-en-Josas

Finance

Speaker : Lira Mota (Columbia

Videoconference

Investors value safety services in nancial assets, such as the ability to serve as a store of value, to serve as collateral, or to meet mandatory capital and liquidity requirements. I present a model in which investors value safety services not only in traditional safe assets such as US Treasuries, but also in corporate debt. Shareholders thus maximize the value of the rm by complementing standard business operations with safe asset creation. Based on this theoretical framework, I use the CDS-bond basis to derive a measurement of the safety premium of corporate bonds. I document substantial cross sectional variation in the safety premium of corporate bonds, which allows me to test the model's predictions. I show that a high safety premium leads to a marked increase in debt issuance by relatively safer rms. These debt proceeds have a small impact on real investment and are largely used instead for equity payouts. This mechanism can explain why, in the aftermath of the nancial crisis, non- nancial investment grade companies signi cantly increased their debt issuance and equity payout while investment remained weak.

Click here to download the paper

 

Participate

Add to Calendar
2021-04-08T15:00:00 2021-04-08T16:00:00 The Corporate Supply of (Quasi) Safe Assets - Lira Mota Finance Speaker : Lira Mota (Columbia)  Videoconference Jouy-en-Josas